CFPB Reports on Mortgage Forbearance and Delinquencies

In two publications, the CFPB reported findings from analyses of pandemic-related mortgage forbearance and delinquencies and from consumer complaints.

In a special issue brief on the "characteristics of mortgage borrowers during the COVID-19 pandemic," the CFPB found that mortgagor forbearance and delinquency are significantly more prevalent in communities of color and lower-income communities. The CFPB found that single-borrower mortgage loans made up a significantly higher share of loans that were in forbearance or delinquent compared to those who were current. Further, the CFPB found that "the share of loans with a loan to value ratio above 60 percent was significantly larger for borrowers in forbearance (50 percent) or delinquent (51 percent) compared to those who were current (34 percent)." The CFPB concluded that "as programs designed to aid mortgage borrowers during the pandemic wind down, borrowers in forbearance programs or who are delinquent may be disproportionately at risk of losing their home."

In a bulletin detailing mortgage complaints, the CFPB determined that consumers primarily faced issues with (i) the accuracy and clarity of information provided by their loan servicers regarding the status of their loans or post-forbearance options and (ii) significant delays or denials of loan modifications.

The CFPB noted that it recently issued a Notice of Proposed Rulemaking that would amend Regulation X, 12 C.F.R. 1024 and the existing Mortgage Servicing Rule provisions to add additional borrower protections related to COVID-19. The public comment period closes on May 10, 2021.

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